home > blogs > Archives
Archives - 2010
  • GDP growth of 8.9% in 2QFY11 is a resounding validation of the India growth story. India has effectively endured a global crisis and the worst drought in 30 years. It continues to be one of the fastest growing economies – its GDP is likely to grow at ~9% in FY11 and well into FY12. Growth should rise to double digits, on track with the higher growth trajectory of the last decade. In short, India i..

    Tags : Economy,  GDP
  • The Indian economy is no longer at the crossroads; rather, it is on the right path to sustainable growth. GDP growth of 8.9% in 2QFY11 is a resounding validation of the India growth story – it has effectively endured a global crisis and the worst drought in 30 years. India continues to be one of the fastest growing economies in the world – its GDP is likely to grow at ~9% in FY11 and well into FY1..

    Tags : Economy
  • As an organization we all focus on our products and business. But apart from being known for its business it is very important for every organization to be recognized as a people-oriented company. We must remember that products cease to have an existence without people to create, market and support them. Each organization should be respected for its intrinsic belief in people. Understanding employ..

  • India`s 2QFY11 GDP growth at 8.9% (MOSL 9%, Consensus 8.2%) signifies (1) economy operating close to potential, and (2) resounding validation of the India growth story. While agriculture and services expectedly turned up, industry also performed well. Most importantly private consumption is back and the government is only gradually withdrawing its fiscal support. We expect GDP to grow at ~9% in FY..

    Tags : Economy
  • Mobile Trading 06-Oct-2010 | 16:50 By Motilal Oswal

    The start of the internet age redefined ways of conducting financial transactions including broking. The last few years have seen online trading in India develop and grow into a mature business with products being developed continuously and volumes stabilize. Internet penetration is low in India with 45 mn internet users, while there are 127 mn mobile users capable of accessing data services throu..

  • There are typically three types of employees in every company. The ‘Engaged employees’ who are completely committed to the role that they perform and deliver superior results. The ‘not engaged’ employees who do pretty much what they are supposed to do (nothing more or less) but are susceptible to overtures from competition. The third band, the ‘actively disengaged’, is employees who have completel..

  • FINANCIAL FREEDOM 16-Aug-2010 | 16:52 By Motilal Oswal

    There is a lot that independent India has achieved. From 1951 to date; our economy has grown from 21 billion dollars to 1.2 trillion dollars. That’s over 60 times in 60 years. From the 3-4% Hindu rate of growth in the pre-90s, India has transformed into one of the fastest growing economies in the world. What’s more; in the next 6-7 years this GDP will further double. The opportunity today is ..

  • We all might have noticed that most Managers in any organization get to leadership role because they have proven their excellence as individual contributors in their areas of operations and specializations. But same time not many of them have had any formal or structured orientation to managing people, even some may have not attended any management program informally. As we all know still it is pe..

  • A lot of mutual fund communication suffers from what I call the `middle path wallpaper syndrome`. What`s that? Taking the safe middle road to communication messaging. Smiling, happy faces....dreams being realised...childs education....daughters marriage....better lifestyle.... better home etc etc. Not just mutual funds...banks, insurance and even share broking advisory all fall in the same rut. Ki..

  • The idea of a minimum level of public shareholding in listed companies is not new. Until the early 1990s, promoters of listed companies were not allowed to hold more than 40% of the paid-up capital. This was relaxed to allow up to 90% promoter holding. The latest amendment requires a minimum public float of 25% in listed companies, irrespective of what requirements applied to them at the time of t..

  • The exact gravity of the European debt crisis is difficult to understand by an ordinary person sitting in India. However, when an expert like Nassim Taleb has to say something in this regard, one should sit up and take notice. This is what he had to say to CNBC Europe yesterday The economic situation today is drastically worse than a couple years ago, and the Euro is doomed as a concept. "We ..

    Tags : Economy,  Debt Crisis
  • To my mind, European situation is not that precarious as it was in the US during the Lehman crisis. I know that there would be many economists who would vehemently disagree with this but I think US. Relevance of EU to world GDP growth, cross country trade and as a reserve currency is far lesser than that of the US. When there was question mark over US economic growth, the world panicked. However, ..

    Tags : Debt Crisis
  • In the back drop of the European crisis, I expect that world recovery will lose some momentum in 2010-11 but I do not anticipate that the recent turmoil in the markets will derail the global upswing. The implication for Asia is that the regional rebound will slow rather than stall and it remains likely that growth will stay far higher than elsewhere. Accordingly, Asian central banks will be focuse..

  • Sensex:16,022(-2.71%) Nifty: 4,806 (-2.78%) BSE MidCap: 6,489(-3.00%) BSE SmallCap: 8,176 (-3.43%) Top Gaining Sectors: Nil Top Losing Sectors: Metal, Consumer Durable, Capital Goods, Banking and Oil&Gas. Market Moves: Sixteen - Not so Sweet!!! Weak overnight US cues, tension in Korean peninsula and further worsening of debt crisis in Europe were villains of the day. Stocks were sold off as fe..

  • I am building a bullish case scenario in India inspite of all the turmoil in financial markets around the globe. European markets are further down 2% today, as I write now. I am pretty confidant that inspite of sensex and nifty having broken the 200 dma, there is a very strong case for being on the long side of the market now. I would avoid commodities for sure, but would strongly look t..

  • From my perspective as an analyst, the past week has been tedious because financial markets have been reacting to "headline risks” rather than the long term underlying fundamentals of the economy. Of course, financial markets are always pricing in new and unexpected risks, so this is nothing new. However, the intensity of the situation in Europe (i.e., Greece) and Washington (i.e., financial ..

  • Telecom regulator (TRAI) released drastic recommendations on spectrum management and licensing framework this week. The recommendations propose significant changes including: (1) One-time pay-out for spectrum allocation beyond 6.2MHz for GSM operators, (2) Hike in annual spectrum charges (linked to revenues), (3) Significant pay-outs for spectrum (linked to 3G auction winning price) and ..

    Tags : Telecom,  TRAI
  • The RBI’s credit policy for FY11 was largely on expected lines, but the quantum of hikes was lower than expectations of few market players. The latest monetary measures and policy review clearly reflect the increasing emphasis on reigning in inflationary pressures. While, economic growth has been strong; the central bank highlighted possible risks due to an uncertain global environment and erratic..

    Tags : Economy,  Credit Policy,  RBI
  • Greek Debt Crisis 17-May-2010 | 10:43 By Motilal Oswal

    The crisis in Greece crystallises the worries about the dire state of the public finances in many countries around the world. The fact that a Greek default is even considered possible is a fundamental shock to confidence in the world order. For a start, Greece has been seen as an advanced economy, if only by virtue of its membership of the euro-zone. As such, the shock value of a sovereign default..

    Tags : Economy,  Debt Crisis
  • 80% of people who fail on the job fail due to lack of interpersonal skills – not lack of technical skills A senior executive is fired after a run-in with the Board of Directors. An ineffective team leader is given a new team to manage – the team mutinies. An employee is reprimanded after losing her temper with a customer. Three different individuals, three unique situations, one common problem:&nb..

  • Warren Buffet says "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” This is very apt in today’s context as there are horror stories all around us. The financial world as we know it is coming to an end, say a lot of experts. Governments across the world have piled on too much debt. Soon, there will be a wave of de..

  • Why are brands so important in financial services? For one the category is fairly young. Be it banking, insurance, mutual funds or stock broking; there is a lack of knowledge among consumers about which product is better, cheaper, faster. Hence the need for trustmarks.Secondly, being intangible (with at best, a future promise of return on investment), you can’t touch/feel/enjoy financial products ..

  • Classical branding taught us about power brands that stand the test of time.Across market conditions, geographies and time.Have a good product, invest in your brand over time; and it will continue to be iconic. But in the recent past in an increasingly `instant` world; not too many technology brands seem to stand the test of time and tend to lose their aura pretty quickly. Let`s look at cars. From..

    Tags : Technology,  Branding
  • In the stock markets some people make money. And many make mistakes. The reason why there`s a new campaign from Motilal Oswal that helps educate investors and traders about some basic home truths of investing/trading in shares that will help avoid these mistakes. We keep telling these truths to clients when we meet them or when we present to them. Taking it onto a broader canvas was the next logic..